READ ME before choosing your umbrella

Be aware that by using a legitimate umbrella that will pay the expected amount of tax and NI, you will receive approximately 65% of your day rate.

If you pay less than 35% tax (>65% take home) then I would imagine HMRC are NOT receiving PAYE amounts and will come after you for the gap.

There are sanctions and fines that HMRC can impose on these dodgy providers, but I've never heard of any company being caught and I don't know anywhere where these penalties are published, and that's the main deterrent in my book.

Last edited by cojak; 7th July 2017 at 09:47.
Reason: Reflect new HMRC sanction on dodgy umbrellas

I just tried to call this. The conversation: -
them: HMRC counter avoidance
me : is this the right number to report a tax avoidance scheme?
them : errr - might be. where did you get this number?
me: internet
them : errr - I will ask

Someone else then came on the line and filled in a form which I was told would be passed onto a specialist investigation unit.

I asked if there would be any feedback and was told that there would definitely not be. I then pointed out that myself, and many others on CUK, feel that HMRC do not do enough to tackle promoters. I was told that this was well beyond his pay grade.

I asked if there would be any feedback and was told that there would definitely not be. I then pointed out that myself, and many others on CUK, feel that HMRC do not do enough to tackle promoters. I was told that this was well beyond his pay grade.

Maybe snail mail might be worth a go - apparently, they respond better to the old fashioned way of communicating

HMRC Fraud Hotline
Cardiff
CF14 5ZN
United Kingdom

Just watching what I say

We now offer Ltd too, so if you need a company that you can switch between Ltd & Umbrella, just shout!

Take home thats too goo to be true

Be aware that by using a legitimate umbrella that will pay the expected amount of tax and NI, you will receive approximately 65% of your day rate.

If you pay less than 35% tax (>65% take home) then I would imagine HMRC are NOT receiving PAYE amounts and will come after you for the gap.

There are sanctions and fines that HMRC can impose on these dodgy providers, but I've never heard of any company being caught and I don't know anywhere where these penalties are published, and that's the main deterrent in my book.

I agree entirely, this is an absolute time bomb for an awful lot of contractors who have been tempted by these schemes.

If its too good to be true then I'm afraid that it is.

The other thing to be aware of is that if you don't have a complete NI contribution record over a minimum of 30 years then you will have a nasty shock when you come to retire.....no full state pension